"Writing off" your vehicle means paying you its fair market value rather than fixing it. We “write-off” your vehicle if fixing it will cost more than writing it off. It's a decision based on dollars and cents.
We choose whichever costs least because controlling costs helps us control your Autopac premiums. In short, it's the responsible financial decision to make.
When deciding to write-off a vehicle, we always examine three things:
- The cost of fixing the damage.
- The actual cash value (ACV) of your vehicle — its fair market value before it was damaged.
- The salvage value of your vehicle — how much we can sell your damaged vehicle for. We write-off your vehicle by paying you its fair market value. Once we've paid you for your vehicle, we own it. We then sell it by auction and keep the proceeds. The salvage value is important to our decision because it helps determine whether your vehicle should be fixed or written off.
We'll write-off your vehicle when:
- The cost of fixing it is more than its actual cash value, or
- The cost of fixing it is more than its actual cash value minus the salvage value.